Affinion inks deal with Turkish concierge firm

Richard Lee

Published 10:13 pm, Monday, December 3, 2012

Stamford-based marketing firm Affinion Group is expanding its global reach with a new partner and the acquisition of a majority stake in Back-Up, a concierge service in Turkey.

Affinion is partnering with Turkish consumer-service firm Boyner Holding Co. in marketing Back-Up's services in Turkey, one of the largest populations in Europe with nearly 80 million consumers.

Financial terms of the agreement were not disclosed.

The deal follows Affinion's expansion into Brazil last year, Finland in 2010 and Spain in 2009. Affinion, which helps companies enhance brand loyalty, has about 4,500 employees and marketing capabilities in 18 countries.

Among the fee-based services offered by Back-Up are medical checkups, ambulance services, roadside assistance and travel options, said Affinion spokesman Michael Bush, adding that the goal will be to expand the offerings.

"We'll explore offering services like we have in the U.S.," Bush said.

Affinion, a unit of Apollo Global Management, provides programs in subscription-based lifestyle services, personal protection, insurance and other areas to help generate increased customer loyalty and revenue for more than 5,570 marketing partners worldwide in financial services, retail, travel and Internet commerce.

"As measured by GDP, Turkey is one of the largest countries in Europe where we lacked a presence," Todd Siegel, chief executive officer of Affinion Group, said in prepared comments. "We see significant parallels between the product suite offered by Back-Up with many of the benefits we've successfully marketed in the U.S. and Europe."

The agreement with Boyner comes three months after Siegel said on July 26 that Affinion's earnings would decline for the year.

Bloomberg News reported in late August that the company suffered when banks, one of its biggest client groups, cut back on Affinion's services, causing its quarterly sales to fall for the first time since at least 2010.

Affinion hasn't turned a profit since becoming a privately held business in 2005, according to Bloomberg. Affinion's presence in Stamford is another sign of the city's preeminence as the state's leading international business center, said Jack Condlin, president and chief executive officer of the Stamford Chamber of Commerce, which has its International Trade Council.

"About 15 years ago, it (the city's presence in international business) started, and 10 years ago it really shifted gears," he said. "It happened over time because of the companies that moved here. That's why Stamford is leading the state out of the recession."